(a) TRANSFER
AUTHORIZED. (1) Notwithstanding any other provision of law and subject to
subsection (b), the Secretary of Defense may transfer to Federal and State
agencies personal property of the Department of Defense, including small
arms and ammunition, that the Secretary determines is:

--(A) suitable for
use by the agencies in law enforcement activities, including counter drug
and counter terrorism activities; and

--(B) excess to the
needs of the Department of Defense.

--(2) The Secretary
shall carry out this section in consultation with the Attorney General and
the Director of National Drug Control Policy.

--(b) CONDITIONS FOR
TRANSFER. The Secretary of Defense may transfer personal property under
this section only if:

--(1) the property
is drawn from existing stocks of the Department of Defense;

--(2) the recipient
accepts the property on an as-is, where-is basis;

--(3) the transfer
is made without the expenditure of any funds available to the Department
of Defense for the procurement of defense equipment; and

--(4) all costs
incurred subsequent to the transfer of property are borne or reimbursed by
the recipient.